The Last Minute Christmas Present for the FED
We´re on a December 23rd Friday afternoon and the economic data for the week has all been published, so there are no more surprises out there. But, the US new home sales data was reserving a last minute Christmas present for Yellen.
The number was close to 600k, which is about 30k higher than last month which is the highest since July. Speaking from personal experience in the UK, house prices have been surging in other developed countries, but in the US they´re still quite affordable because of the 2008 crisis and the scars that all those foreclosures have left. So, higher demand means higher house prices in the near future, which is good for inflation, therefore for the FED.
The US new house price uptrend continues
The UoM consumer sentiment on the other hand, reserved an even better present for the FED. It came out at 98.2 points which is the highest number since the long forgotten year of 2004. The US consumer is growing confident and that´s the biggest Christmas present… FOR TRUMP.
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